We took share from key competitors and key enterprise markets. We added several new features, including Infrastructure-as-a-Service capabilities through Windows Azure. With Azure, we are fundamentally changing the way the businesses manage their IT infrastructure, and we continued the expansion of our data center for print, which enables us to deliver high value services and experiences globally.

As we look to fiscal 2014, we are focused on a single strategy. With our new organizational structure, we believe we will be able to execute more quickly and more efficiently, driving long-term growth, profitability and shareholder value.

With that, I will turn it back to Chris, and we will take some questions.

Chris Suh - GM, IR: Thanks, Amy. We want to get to questions from as many of you as possible. So, please just stick to one question. Operator, please go ahead and repeat your instructions.

Transcript Call Date 07/18/2013

Operator: Walter Pritchard, Citigroup.

Walter Pritchard - Citigroup: I’m wondering, if you could talk a little bit about – you talked about COGS in Q1 and you don’t mentioned COGS, so you obviously have Xbox One launching in the second quarter, could you give us some guidance about how we should think about that product having an impact on margins, maybe comparing it to the 360 or anything else you could do to help us directionally with the COGS impact beyond Q1?

Amy Hood - EVP and CFO: As we transition to a device and services company, I think you should keep in mind that we expect CapEx to continue to grow as we ramp our business. Specifically to Xbox One and new generation of consoles and launches, I think you should think about that as we think about all console lifecycles and to keep that in mind as you model COGS and seasonality throughout the year.

Operator: Mark Moerdler, Sanford Bernstein.

Mark Moerdler - Sanford Bernstein: Can you give us some color on the short-term revenue impact of the move to the cloud? Is it just MBD? Is it also in Server and Tools? How does the license revenue convert to cloud revenue?

Amy Hood - EVP and CFO: It is primarily in MBD, where we had a higher percentage of our revenue that was accounted for transactionally, both on the business side and in the consumer side. So I think that’s why you’ve seen us in our outlook for Q1 try to start to explain that transition to consumer by saying that we expect it to lag the PC market by approximately 5 percentage points while (attaching pieces).

Mark Moerdler - Sanford Bernstein: Is there a similar lag on the transactional side on the enterprise?

Amy Hood - EVP and CFO: Yes, you can see it. When we gave the guidance for the business segment, we said 10% growth in the annuity, and so that was clearly, say, the part of that is a transactional move from recognizing the front revenue to multi-year licensing agreement.

Operator: Philip Winslow, Credit Suisse.

Philip Winslow - Credit Suisse: Just a follow-up on actually both those two. First, Amy, obviously when you go to a subscription model, you have less upfront, kind of lower billing that first year versus license. Wondering if you could give us sort of a backfill where $1 of cloud or Office 365 revenue would have been – in that first year would have been $3 relative to license, just so we can try to backfill and help with that transition. Also actually to Walter’s question about Xbox COGS, maybe we could have a sense for – if this cycle really should be any different than previous cycles when you thought about pricing relative to the cost of the console itself?

Amy Hood - EVP and CFO: I’ll try to remember both those questions. Let me take the second one, because it’s the most recent in my mind. I would not think about this console cycle as being any different from prior cycles. So, let me go back to the first question, which is can I give an example, I believe, how to think about the transition from how we used to recognize revenue when we bought something upfront transactionally versus buying a subscription from us. I’ll give an example. If you used to buy a license from us as a consumer and paid us, for example, $100 for ease of math, we recognized the $100 in the period in which it was purchased. Now, if that same person went and bought Office 365 Home Premium and once its activated, we will recognize the revenue over the period of the purchase, which is 12 months and recognize it ratably.